US Judge Seeks Clarifications Ahead of Do Kwon’s Sentencing Amid South Korean Legal Considerations
On December 8, Judge Engelmayer requested detailed clarifications from prosecutors and the defense ahead of Do Kwon’s sentencing scheduled for December 11. The court is considering whether Kwon could face an additional prison term of up to 40 years in South Korea following his US sentence, and if the Korean and US sentences would run concurrently or consecutively. The judge asked for information about an ongoing South Korean case involving Kwon, including the likely outcome, any agreements with Korean authorities, and the applicable sentencing ranges if convicted.
The judge also sought clarification on how Kwon’s custody in Montenegro, which lasted about 21 months from March 2023, affects his US sentence. Questions included whether the Bureau of Prisons would credit that time towards his US term and whether the assumed 12-year sentence for the US case accounts for no such credit. Prosecutors have urged a 12-year sentence based on Kwon’s guilty plea, while the defense is advocating for five years, arguing that the Montenegro detention and potential extradition to South Korea could produce an excessively long combined sentence.
Kwon pleaded guilty in August to conspiracy and wire fraud related to false statements about the stability of TerraUSD and concealing Jump Trading’s role during TerraUSD’s 2021 depeg. The collapse of TerraUSD was linked to broader market turmoil, including the FTX implosion.
Furthermore, Judge Engelmayer sought guidance from the Department of Justice on issues of victim compensation and asset forfeiture, specifically questioning which victims qualify for compensation from seized assets given that no restitution order was requested. Clarification was also requested on the implications for supervised release if Kwon is transferred to another jurisdiction, and how that country would enforce the sentence, noting that international transfer processes typically require recommendations from the Bureau of Prisons.
